What does an auto dealerships do? How many Auto dealerships are in the US? - How many are new cars dealerships?

Delivered January 11th, 2018. Contributors: Jessica D. and

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What does an auto dealerships do? How many Auto dealerships are in the US? - How many are new cars dealerships?

In the United States, there are just under 18,000 auto dealerships currently in operation. Of those, 16,708 are classified as new car dealerships. Auto dealerships purchase vehicles from manufacturers and from the public, then selling those vehicles to consumers. They also offer additional services related to their primary sales function. These include financing and insurance for customers at the time of initial sale, as well as vehicle repairs and servicing after the customer leaves with their purchase.

Below you will find the full explanation of auto dealership functions.

Auto Dealerships in the United States

The exact number of auto dealerships currently operating within the United States was not offered publicly, although it is available behind a pay wall. However, one source published in 2017 states that there are "just under 18,000 today." Another source, this one from 2016, indicates that the United States has 16,708 new car dealerships in operation. With less than a year between their publications, time would not cause great discrepancy between the two sources. It seemed too small a remainder to account for used vehicle dealerships, but this may be related to the fact that many new dealerships also sell used vehicles.

Auto Dealership Functions

Auto dealerships provide consumers with new or used vehicles, or both, obtained through purchase from manufacturers or through trade with consumers. The inventory an auto dealership chooses depends on market analysis and what the manufacturer wants them to provide.

The primary function of an auto dealership is vehicles sales, but additional services are offered in support of that primary function. There are two types, the first being those that are utilized during the initial purchase of a vehicle, financing and insurance. Without financing available, most consumers would not possess the resources to purchase any of the vehicles offered by the dealership. Insurance has equal importance, given that a vehicle cannot be legally driven without insurance and the protection for the auto dealership's investment that insurance provides.

The other services provided by car dealerships are available after the initial purchase. These services include the regular maintenance a vehicle requires. They also offer the repairs necessary in the event that the vehicles stops working properly, either due to an accident or the effects of time.

Conclusion

Auto dealerships sell new and used vehicles to the public as their primary function. Additional services are also offered in support of that function, including financing, insurance, repairs and maintenance. As of 2017, there were nearly 18,000 auto dealerships in the United States, of which 16,708 were new car dealerships.